Banking and Financial Services Procurement Intelligence Report, 2023 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Banking and Financial Services Category Overview

The banking and financial services category is anticipated to grow at a CAGR of 9.6% from 2023 to 2030. In 2021, Western Europe was the largest region in this category followed by North America. This category has grown due to the widespread adoption of digitalization among banks and other financial institutions along with the rapid expansion of commercial lending. Allianz Group, Industrial and Commercial Bank of China, JPMorgan Chase & Co., Bank of America Corporation, Wells Fargo & Company, HSBC, and Citigroup Inc are significant players in this category.

Banks and other financial institutions are implementing digitization to modernize their commercial lending operations due to increased bank rivalry and consumer demand for an efficient and speedy commercial financing process. Digitization increases consumer satisfaction and gives banks the ability to target new consumer segments and provide customer-centric solutions. Due to the enhanced level of data security provided by EMV chips and PIN cards, the adoption of EMV technology has increased quickly across the worldwide payments sector. Around the world, the adoption of EMV chip payment cards has increased steadily reaching 71.7% in Canada, 61.2% in Africa and the Middle East, and 32.7% in Asia-Pacific.

This category is fragmented due to the presence of numerous players, such as regional and community banks, credit unions, fin-tech startups, and specialized financial service providers. This fragmentation fosters competition and allows for a wider range of services and options for consumers and businesses but can also create challenges in coordination and regulation. However, it promotes innovation, accessibility, and competition.

Financial companies are investing in big data and AI analytics to gain insights into client categories, product penetration, and training programs. This helps them to improve operational efficiency, boost client acquisition & retention rates and provide real-time investment guidance. JPMorgan Chase has made significant investments in creating cutting-edge fin-tech solutions like their mobile banking app and online platforms. These technological advancements have increased consumer comfort, streamlined procedures, and minimized operating expenses related to conventional banking activities. To automate numerous processes including fraud detection and risk assessment, they have also used AI and machine learning algorithms. This has improved decision-making accuracy and efficiency.

Price and cost information are essential for decision-making and transparency in banking and financial services. Price information relates to interest rates, fees, commissions, and charges while cost data relates to operating expenditures, regulatory compliance, investments in technology, and overhead costs. Clear and accurate price information helps customers to make educated decisions while cost data helps policymakers and regulators to keep an eye on market stability, ensure fair pricing, and protect consumer interests. Transparency in both price and cost information fosters healthy competition, builds customer confidence, and empowers them to make wise financial decisions.

The COVID-19 pandemic presented the financial services industry with a number of business issues including a lack of liquidity, a temporary decline in credit demand, cost-reduction in business models, digitization of essential operational processes, and adaptation to new and altered regulatory regulations.

Implementing robust contract management processes, fostering strong supplier relationships, utilizing technology for efficient procurement, adopting strategic sourcing methodologies, and promoting transparency & accountability throughout the sourcing process are some important best practices. Banking and financial services organizations can improve operational efficiency, maximize cost savings, reduce risks, guarantee compliance with quality and compliance standards and uphold high service standards by implementing these best practices. 

Banking and Financial Services Procurement Intelligence Report scope